Comments on: Don’t Treat a 401(k) Like a Savings Account

By: Your Money Relationship - Weekly Roundup - May 3rd

Your Money Relationship - Weekly Roundup - May 3rd — Sun, 03 May 2009 20:07:12 +0000

[...] at Yielding Wealth recommends not using your 401(k) as a savings account. I second [...]

By: SJ

SJ — Fri, 01 May 2009 17:31:17 +0000

More importantly you would be ignoring the opportunity cost by taking money out of the 401k. I mean, money is only there cuz you think it will grow =)

By: Miranda Marquit

Miranda Marquit — Fri, 01 May 2009 14:51:22 +0000

You make a very good point. Eventually the stock market will recover. You don’t actually sustain a loss until you sell your stake…

By: David Stillwagon

David Stillwagon — Fri, 01 May 2009 01:58:57 +0000

I know a lot of people feel that since they have lost so much in the past year on their 401k that it is tempting to take it all out. But that would be making matters even worse. Eventually the market will go back up and their 401 will too.
Treat 401k money like you can’t get to it.

By: Miranda Marquit

Miranda Marquit — Thu, 30 Apr 2009 15:31:02 +0000

Yikes! THAT’S what savings accounts are for — saving up for a down payment on a car.

By: The Weakonomist

The Weakonomist — Thu, 30 Apr 2009 12:38:33 +0000

I just got a question from a co-worker about borrowing. She wants to use it to buy a car… Whew lesson learned.